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Friday, September 11, 2020

How a no deal Brexit will hit the pound in our pocket

Just in case all this fuss about a no deal Brexit is proving to be a bit esoteric, here is Morrison's supermarket with a more down-to-earth interpretation.

The Guardian reports that the boss of Morrisons, Britain’s fourth-largest grocery chain, has warned supermarket prices will go up unless the UK government negotiates a tariff-free Brexit deal with Europe:

“From our point of view representing British consumers we would like the government and the leaders of the country to negotiate a deal that includes no tariffs UK to Europe or Europe to the UK because tariffs do drive inflation,” said David Potts, the chief executive of the Bradford-based supermarket.

He added that avoiding inflation was particularly important in a “recession year”.

Potts said Morrisons, which runs its own food processing and packaging plants and has direct relationships with farmers, was in a “good position” to weather the Brexit storm as two-thirds of the products it sells are British. But he added that the company could not stockpile perishable items, such as fruit and vegetables.

Those supermarkets who rely more heavily on imports will be forced to put up prices even more. The new year could see big increases to the cost of living because of Boris Johnson's failure to secure a trade deal with the EU.
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